Public lender Bank of Maharashtra on Wednesday reported over seven-fold increase in its net loss to Rs 3,764.26 crore for December 2018 quarter due to Rs 4,421 crore provisions and contingencies it made during the period.

The Pune-headquartered state-owned bank had posted a net loss of Rs 596.70 crore in the corresponding quarter of the previous financial year.

The provision for the bad loans increased significantly to Rs 4,538.28 crore in the quarter, compared with Rs 1,343.62 crore in the year-ago period.

However, there was some respite on the asset quality front.

The bank's asset quality although improved, with gross non-performing assets or NPAs declining to 17.31 per cent of the gross advances as on December 2018 as against 19.05 per cent in the corresponding quarter a year ago.

Net NPAs also declined to 5.91 per cent of the net advances by the end of the third quarter from 12.17 per cent in the year-ago period.

The bank said its non-performing loan provision coverage ratio now stands at 81.08 per cent against 58.71 per cent as of March 31, 2018.

Also, it non performing investments reduced to Rs 130.40 crore as on December 31, 2018 as compared to Rs 207 crore as on December 31, 2017, the bank said.

Percentage of NPA eased to 5.91 per cent in Q3FY19 over 10.61 per cent in Q2FY19. The figure stood at 12.17 per cent in Q3FY18.

Gross NPAs as percentage of total advances fell to 17.31 per cent for the quarter from 18.64 per cent in September quarter and 19.05 per cent in the year-ago quarter.

AS Rajeev, the newly appointed Managing director and CEO at Bank of Maharashtra said that the bank is making all efforts to improve its financial performance.

“We have made various structural, systemic and strategic changes towards this end,” he pointed out.

The bank would continue to focus on improving operational efficiency and strengthening retail, agriculture and MSME (RAM) to provide value to its customers and shareholder, he said.

The bank made Rs 1,156.49 crore provisions for the quarter in respect of the 17 RBI-referred NCLT accounts looking at the uncertainty in recovery. It has made Rs 4,855.06 core of provisions in total for such accounts, representing 100 per cent of the outstanding value, the bank said.

Besides, out of 40 accounts under NPA category, bank made Rs 1,988.40 crore provisions due to deteriorating in value of underlying assets.

Total provisions made for such account at Rs 3,676.20 crore till the December end now represents 100 per cent of the outstanding amount, the bank said.